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JONBUR Research · Initiation

HanWool Materials Science · 091440 · Electronics

HanWool Materials Science: Persistent Losses, Shrinking Revenue and Heavy Leverage

Why this report

Start of coverage: written when a reader opened this company and there was no report yet.

HanWool Materials Science (KOSDAQ: 091440) closed at ₩2,505 on 2026-10-16 with a market value of about ₩93.0B, down 7.2% over one month and 9.7% over three months. Filed statements show operating and net losses in each of the last five years, a thin cash balance and debt well above equity.

Written Oct 18, 2026 · Data as of Oct 16, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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Thesis

The data supports a picture of a small electronics company under financial strain. Revenue was ₩13.4B in 2025, down 22.5% after a 53.9% fall in 2024, and the trailing twelve months to H1 2026 show revenue of ₩13.1B against an operating loss of ₩19.6B. The share price is only 0.6% lower than a year ago and sits between its 52-week low of ₩1,790 and high of ₩3,950, so the market value has not fallen in line with the business results. The data does not explain why losses have widened or whether a recovery is planned, and no news headlines are available. Recent filings show conversion rights and subscription warrants being exercised, which points to ongoing external financing, though the data does not give the amounts or the dilution effect.

Business overview

The company is listed on KOSDAQ in the Electronics sector. It was founded on 2000-09-20 and listed on 2008-02-01, with 37,122,980 listed shares. It is led by two co-CEOs, 신규철 and 임세혁. Revenue peaked in the data at ₩37.6B in 2023 (up 63.1%), then dropped to ₩17.3B in 2024 and ₩13.4B in 2025. The data does not describe products or customers. Foreign ownership is 1.2%, down from 1.5% sixty days earlier.

Financial analysis

These figures come from filed financial statements. Operating losses were ₩4.8B in 2021, ₩9.4B in 2022, ₩4.1B in 2023, ₩12.9B in 2024 and ₩24.6B in 2025. Net loss in 2025 was ₩33.8B, with an operating margin of -183.1% and ROE of -89.4%. For the twelve months to H1 2026, operating income was -₩19.6B (margin -150.2%), net income -₩30.7B (margin -234.6%) and ROE -89.1%. Liabilities are 315.1% of equity. Cash is ₩1.0B against borrowings of ₩28.5B, and free cash flow over the period was -₩34.1B. Cash is therefore small relative to both debt and the annual cash burn.

Valuation

The P/E and EV/EBITDA cannot be calculated because earnings are negative. The price-to-book ratio is 3.4, versus 3.2 at the end of 2025, 5.7 at the end of 2024 and 20.2 at the end of 2023. Price-to-sales is 7.1 and enterprise value is ₩120.4B. No dividend is paid. Peers show P/B of 2.2 for Samsung Electronics, 1.0 for LG Electronics, 2.1 for Hanwha Vision, 3.6 for RFHIC and 5.0 for KMW, so HanWool sits in the middle to upper part of that group on book value despite its losses. The valuation model did not produce an estimate, so there is no model estimate per share to compare with the ₩2,505 price.

Catalysts

  • Several 5%+ holding reports were filed between August and October 2026, most recently on 2026-10-13, indicating changes in major shareholdings.
  • Exercise of conversion rights (7th Series) and subscription warrants (1st Series) in August and September 2026 could add shares and affect the share count.
  • The half-year report for June 2026 was filed on 2026-08-14 and set the latest trailing figures.
  • An extraordinary shareholders' meeting on 2026-08-12 included a report on independent director appointments, which may signal board changes.
  • Over 20 days retail investors were net buyers of about ₩886M and foreign investors of about ₩353M, while institutions were net sellers of about ₩401M.

Risks

  • Operating and net losses have occurred in all five years shown and widened in 2025.
  • Cash of ₩1.0B is small against ₩28.5B of borrowings and a trailing free cash flow of -₩34.1B, creating funding pressure.
  • Liabilities are 315.1% of equity, leaving limited balance sheet cushion.
  • Conversion rights and warrants being exercised may dilute existing shareholders.
  • Revenue has fallen for two consecutive years, and the data gives no information on the cause or on any outlook.

Closing view

The filed numbers show a company with falling sales, deepening losses, high leverage and little cash, while the share price has held up relatively well over a year. A P/B of 3.4 on shrinking equity and negative returns is hard to link to current results, and no model estimate is available as a cross-check. Financing activity and shareholder filings are the visible developments to follow, but the data is not enough to judge whether the trend will change.”}

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Filings and data used

Report history

  1. Oct 18, 2026InitiationStart of coverage (reader request)HanWool Materials Science: Persistent Losses, Shrinking Revenue and Heavy Leverage

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information